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New York Faces Medicaid Coverage Loss Amid Unwinding Process

Illustration depicting healthcare and Medicaid issues in New York.

News Summary

New York is experiencing a significant reduction in Medicaid coverage, with nearly one million residents disenrolled in recent years. The unwinding process following the COVID-19 pandemic has raised alarms among health officials, who warn that this rollback of coverage will disproportionately affect vulnerable populations. Future changes are anticipated due to the passage of President Trump’s ‘One Big Beautiful Bill Act,’ which may lead to further reductions in coverage. As states grapple with varying disenrollment rates, the potential rise in the uninsured population is a growing concern nationwide.

New York is facing a significant loss in Medicaid coverage, with nearly one million residents disenrolled from the program over the last two years. Data from KFF indicates that from March 2023 to March 2025, about 930,000 individuals in New York have been removed from Medicaid, part of a nationwide “unwinding” process following the COVID-19 pandemic.

The unwinding of Medicaid coverage has raised concerns among health officials. The New York State Health Commissioner noted pressing threats to the health stability of many New Yorkers. He warned that the rollback of Medicaid coverage puts vulnerable populations, such as working families, children, and individuals with disabilities, at higher risk.

Some individuals who are disenrolled may find alternative health insurance through their employers; however, a significant number may not secure any coverage, making them more vulnerable to health issues. The lack of insurance often leads to delays in seeking medical care, which can exacerbate existing health conditions and drive up demand for emergency services.

Future changes are anticipated due to the passage of President Trump’s “One Big Beautiful Bill Act”, which is expected to heavily modify the Medicaid program. Experts project that millions could lose their healthcare coverage as provisions of the act are implemented, which significantly expands work requirements and changes the definitions of eligible beneficiaries.

In New York, Medicaid enrollment stood at 7,518,061 in March 2023, dropping to 6,585,835 by March 2025. Although New York experienced a decline, the decrease was less drastic compared to other states such as Texas and Florida, both of which saw declines exceeding one million. Despite the drop, New York’s Medicaid enrollment remains 10% higher than pre-pandemic levels.

Differences in disenrollment rates among states can be traced back to varying approaches to Medicaid expansion during the pandemic. States like Texas and Florida chose not to expand the program, while others like California and New York saw more stable enrollment due to broader income allowances under Medicaid expansion and higher rates of automatic renewals.

This trend reflects a broader challenge as nearly 5 million Americans across four states have lost Medicaid coverage over the past two years. Concerns are growing about the potential rise in the uninsured population as the unwinding process continues and further enrollment reductions are expected at the national level.

New York’s Governor has issued a warning that federal funding cuts could result in an estimated 1.3 million New Yorkers losing their Medicaid in the next decade. Many individuals remain unaware that they are at risk of losing their coverage, largely because the majority of their managed care plan is funded through federal Medicaid funds. In May 2023, around 65% of New York’s Medicaid beneficiaries were enrolled in managed care, with many mistakenly believing they possess private insurance rather than federally funded health plans.

Nationwide estimates from the “One Big Beautiful Bill” indicate that up to 12 million people might lose coverage through Medicaid, Obamacare, and CHIP, straining public health resources as the country grapples with these changes. Over 78 million individuals were enrolled in Medicaid as of December 2023, yet fewer than 63 million report having Medicaid coverage, suggesting the existence of a “Medicaid Undercount.”

Compounding the issue, the act introduces new requirements that could cause individuals to lose Medicaid due to non-compliance with work documentation. Historical data shows that states with such work requirements, specifically Arkansas, suffer considerable losses in coverage without any accompanying uptick in employment rates.

The “One Big Beautiful Bill Act” also modifies Medicaid funding by limiting provider taxes and changing funding formulas, further affecting access to care for many low-income individuals. New York is among the seven states that have received a waiver from CMS concerning managed care organization taxes, with its Essential Plan offering coverage for those above traditional Medicaid eligibility thresholds.

Looking ahead, New York’s healthcare landscape could change drastically as ongoing political discussions will likely emerge regarding the state’s strategies to address these shifts in Medicaid funding and management while navigating the repercussions of the federal act.

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STAFF HERE NEW YORK WRITER
Author: STAFF HERE NEW YORK WRITER

NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.

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